RIMOUSKI, Québec, March 04, 2024 (GLOBE NEWSWIRE) — Puma Exploration Inc. (TSXV:PUMA, OTCQB:PUMXF) (the “Company” or “Puma“) reports the execution of definitive sale agreements dated March 1, 2024 (collectively, the “Raptor Agreements“) to welcome a new explorer in New Brunswick: Raptor Resources Limited (“Raptor“).
In 2021, in accordance with Puma’s “DEAR” (Development, Exploration, Acquisition and Royalties) business strategy to generate maximum value for its shareholders with low share dilution, the Company’s non-core base metals assets (collectively, the “Copper Projects“) were optioned to Canadian Copper Inc. (CSE:CCI) (“Canadian Copper” or “CCI“) pursuant to an option agreement dated June 30, 2021, as amended (the “Option Agreement“) in order to provide the Copper Projects with the visibility and attention that they deserved (see Puma’s news release dated July 6, 2021).
More particularly, the Turgeon, Chester, Murray Brook West and Legacy Projects formed part of the Copper Projects. Following satisfaction of all closing conditions under the Option Agreement, this transaction closed on June 2, 2022 (the “Option Closing Date“). Before the execution of the Raptor Agreements, Puma was holding a 100% interest in each of the Projects. Canadian Copper’s right to earn a 100% interest in the Projects was contingent on two (2) remaining payments of CAD$1,000,000 each payable to Puma at the latest on the second (2nd) and third (3rd) anniversary of the Option Closing Date, either in cash or in common shares of Canadian Copper.
In connection with Canadian Copper’s recent acquisition of the Murray Brook deposit (see Canadian Copper’s news release dated February 1, 2024), Canadian Copper has identified an opportunity to sell its interests in the Chester and Turgeon Projects to focus on developing the Murray Brook deposit and surrounding property. Following the execution of the Raptor Agreements, Canadian Copper retains its option rights on the highly prospective Murray Brook West Project and now controls over 15km of the favourable Caribou Mine horizon (see Figure 1).
The sale of the Chester and Turgeon Projects to Raptor will allow Puma to further monetize its copper assets and unlock their value. To earn a 100% interest in the Chester and Turgeon Projects, Raptor will make non-dilutive cash payments and issue common shares to Puma over the next two (2) years in place and in lieu of the payments initially payable by Canadian Copper under the terms of the Option Agreement. With large equity positions in both Canadian Copper and Raptor, Puma will benefit from both companies’ valuation growth as it continues to focus on developing the Williams Brook Gold Project.
Puma’s President and CEO Marcel Robillard stated, “I’m delighted to welcome Raptor to the Bathurst Mining Camp! Having a new player actively exploring in the region is great news. An Australian explorer also brings exposure to new exploration methodologies, connections to other explorers down under, and …
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